Outsourcing has received some negative publicity from those who think it reduces employment opportunities for U.S. citizens and sends jobs overseas. The truth is that outsourcing is a global industry specifically geared toward making companies more efficient.

When certain tasks are outsourced, it frees local staffers to learn new skills and take on new responsibilities. Most companies outsource; business-printing outsourcing, for example, is common in many organizations. You don’t have to be a large firm to outsource successfully; small business outsourcing can be a valuable competitive tool when done right.

Before you start outsourcing business, you’ll need to determine what you expect and find a solution that meets your needs. If you outsource business the right way, you can:

1. Save time and money
2. Spend more time building your customer base
3. Give more challenging opportunities to your employees
4. Expand your business quickly and cost-effectively

Action Steps
The best contacts and resources to help you get it done

Decide what to outsource

Choose between business process outsourcing (marketing, technology) or business services outsourcing (record-keeping, technology support). The most successful business outsourcing projects are those that target the right jobs.

I recommend: For specific types of outsourcing, groups such as the Human Resources Outsourcing Association and CIO.com can be useful. The Small Business Administration can provide information on many aspects of outsourcing.

Know the legal requirements

Make sure you know what you can and can't outsource legally, based on employee's rights and tax requirements.

I recommend: The IRS provides information on tax regulations. Groups such as the Society for Human Resource Management can provide additional help. Outsourcing Law offers legal perspectives and advice.

Find the best places to outsource work

For business process outsourcing, India is the country most people think of, but make sure you've explored all possible outsourcing avenues so that you get the best deal.

I recommend: For information on international business outsourcing, EIU.com provides comprehensive reports on doing business in more than 200 countries. The International Association of Outsourcing Professionals provides comprehensive information on outsourcing resources.

Determine the costs

Outsourcing is supposed to save you money, so find out how much it will cost you to outsource. Get an outsourcing business quote from a variety of business outsourcing companies, and find out what each company promises.

I recommend: Companies including ADP, Ceridian and Accenture can provide cost information.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure your employees understand what you're outsourcing before you start outsourcing business.
• •  Monitor your business outsourcing projects regularly to make sure your costs and results are what you wanted and expected.
• •  Pay attention to your clients and customers; outsourcing should be a seamless process for them, so if it isn't, you will want to find out why.